A formal, written contract made between a buyer and seller for a specific property.
Also referred to as a "Residential Purchase Agreement" (RPA) and "Sales Contract," the purchase agreement is a formal, written contract made between a buyer and seller for a specific property.
The document includes the property address, purchase price, inspections, contingencies, closing date, various addenda, and more. Addenda may also be used to adjust the original terms if all parties agree to sign the revisions. The most common changes are to purchase prices (if the buyer’s agent negotiates for a price reduction) or seller credits.
The contract must be fully signed by the buyer, seller, agent, and escrow. The date of the last signature is used as the ‘start’ date for the contractual closing period. For example, a contract signed by the last party on 1/1 for a 14-day closing period will be expected to close on 1/15 (14 days after 1/1).